European Power for 2014 Advances for First Month Since August

Feb. 28 (Bloomberg) -- Power for 2014 delivery in Germany
and France, Europe’s biggest markets, rose for the first month
since August as European Union emissions permits advanced.

Baseload German year-ahead electricity, for supplies
delivered around the clock, added 1.2 percent, taking its
monthly gain to 4.8 percent. The French contract increased 2.3
percent from its close on Jan. 31 while emissions advanced 44
percent this month. Power can track emissions, which affect
production costs.

“The link between European Union Allowance price movements
and the German power price continues to be strong,” Paolo
Coghe, a Paris-based analyst at Societe Generale SA said in an
e-mailed report. “We continue not to expect any large price
changes in the European energy complex for the week to come.”

German next-year power, a benchmark contract in Europe,
rose 50 cents to 42.35 euros ($55.40) a megawatt-hour at 5:35
p.m. in Berlin, according to broker data compiled by Bloomberg.
French power added percent 0.6 percent today to 44.75 euros.

EU carbon for December gained as much as 13 percent to 5.03
euros a metric ton on the ICE Futures Europe exchange in London.

German power for March rose 1.1 percent to 39.90 euros
while the French equivalent advanced 4.3 percent to 48.60 euros,
broker data show.

Solar power generation in Germany is expected to have a
“strong, additional and depressive impact” on next month
German power prices as spring starts and days get longer, Coghe
said.

Temperatures in France will average 3.1 degrees Celsius (37
Fahrenheit) through March 3 compared with a previous forecast
for 3.2 degrees, according to a GFS model supplied by
MetraWeather to Bloomberg at 5:39 p.m. Berlin time. In Germany,
average temperatures will be minus 0.3 degrees, compared with a
previous prediction for minus 0.2 degrees.